Loan Sizing is available within asset financing deals, which have loans backed by Solar Projects (called Solar Loans within the T-REX platform). Loan Sizing is an extra tab added to the Loan Editor.
This feature, allows the user to design a loan, based on an existing project and given data, such that the loan will be covered by the project perfectly.
Required Settings
Solar Projects Editor:
First, the user must configure a project that will support the loan. See Solar Projects Editor tab for more detailed information.
The project must have a unique Project ID in order to be linked to a loan.
Once the project is defined with a unique ID, the user can move on to the Loan Editor.
Loans Editor:
Within the Loan Editor, the user must define the basic aspects of the loan; the Name, Interest Rate, and Amortization.
The user can link the loan to the project, by toggling Use Asset Cash Flow to Yes.
Within the Use Asset Cash Flows tab, define the Project ID of the relevant project.
Once all definitions are set, the user can move to the Loan Sizing tab.
Loan Sizing:
The table is automatically populated with the settings defined in the previous tabs.
The user will need to define the DSCR (Debt Service Coverage Ratio) target, and click on the Size button.
T-REX will calculate the loan Balance and Payments schedule needed to achieve the DSCR target given the user-provided settings.
Once the results are provided, the user can apply them to the loan, by clicking on the Apply to Loan button, which will populate on the loan.
Important to Note:
The user can define only one loan per project, the Project ID must be unique.